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01/12/1982 (case file 056751) (1)
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01/12/1982 (case file 056751) (1)
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: President, Office of the: Presidential Briefing Papers: Records, 1981-1989 Folder Title: 01/12/1982 (Case File: 056751) (1) Box: 12 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing Page / of 2 ID #. 056751 WHITE HOUSE OFFICE OF RECORDS MANAGEMENT WORKSHEET X MEDIA H - INTERNAL Subject Codes: Name of Document: BRIEFING PAPERS FOR PR 007.01 PRESIDENT'S SCHEDULED APPOINTMENTS FOR JAN1282 TR001. / 2 Presidential platement Puerto Rico Subject: Visit to the Department Transportation FG 024. ST 051.02 Statehood ST 3 Meeting with PuertoPican officials: Former Dovernor LUIS FERRE Governor CARLOS ROMERO Mayor HERNAN PADILLA Commissions BALTAZAR CORRADA of Copy 1 Ronald Reason platement Vou wall theetformal 12/11/80/ vertoRico Statehood 5 Matinawath the Cabinet re Federal FG010.01 Labor Relations, PACE PE001. Examination decree, and Cabinet #6 F6010. 0/0. apecutive Session 6 Photo Dession withVice President FG F6038 038 PR 005.01 7 Drop. by Meetine with heads FG offices Dipartmental Legislative affairs FG030 over ROUTE TO: ACTION DISPOSITION Tracking Type Completion Action Date of Date Office/Agency (Staff Name) Code YY/MM/DD Response Code YY/MM/DD RMMATT RSZ 82/02/08 C C 82 02108 Referral Note: Page 2072 2 ID #. 05 67 51 05 67 51 WHITE HOUSE OFFICE OF RECORDS MANAGEMENT X MEDIA WORKSHEET H . INTERNAL Subject Codes: Name of Document: BRIEFING PAPERS FOR APPOINTMENTS PRESIDENT'S SCHEDULED FOR of JAN1282 - Subject: Meetine to discuss tax exempt Fl 010. states of private institutions HU 001.03 LE - . . . - - - . ROUTE TO: ACTION DISPOSITION Tracking Type Completion Action Date of Date Office/Agency (Staff Name) Code YY/MM/DD Response Code YY/MM/DD RMMATT RSZ 82/02/08 C820208 Referral Note: Det UNPUBLISHED January 11, 1982 5:00 pm THE WHITE HOUSE WASHINGTON THE PRESIDENT'S SCHEDULE Tuesday, January 12, 1982 9:00 am Staff Time 9:04-9:14 Oval Office (30 min) Meese, Deaver) 9:15-9:28 MKD, Em, T. 6 ARR ETT, M. BRADLEY 9:30 am National Security Briefing 9:30-10:00 Oval Office (15 min) (William P. Clark), Em, MKO, NANCE, ADM POINT DEXTER Oval Office 10:00 am Personal Staff Time Oval Office (25 min) 10:25 am Depart South Grounds for Visit to South Grounds Department of Transportation (Stephen Studdert) 11:40 am Return from DOT Visit South Grounds 12:00 m Lunch and Personal Staff Time Oval Office (90 min) 12:55-1:08 am, FULLER, DARMAN 1:09-1:30 SAM PIERCE, FULLER 1:30 pm Presidential Statement re Statehood for Oval Office (15 min) Puerto Rico 1:33-1:51 PHOTO opp. (Richard Williamson) 1:55- 1:55-2:15 CONGRESSIONAL GROUP -- SEE ATTACHMENT - OVAL 2:00 pm Cabinet Meeting 2:17-2:58 Cabinet Room (60 min) (Craig Fuller) 3:00 pm NBC Photo Opportunity with the Vice Oval Office (5 min) President 3:00-3:03 (David Fischer) 3:03-3:07 B. CLARK 3:07-4:02 - NSP6- OVAL ORFICE 3:05 pm Personal Staff Time Oval Office (55 min) 4 :10- 4:15 LEGISLATIVE AFFAIRS DROP-154- ROOBEVENT Rm. 5.50 EE mine Oval Office (20 min) (Baker) Meesey Beaver) 5:15 ? RESIDENCE UNPUBLISHED January 11, 1982 11:00 am THE WHITE HOUSE WASHINGTON THE PRESIDENT'S SCHEDULE Tuesday, January 12, 1982 9:00 am Staff Time Oval Office (30 min) (Baker, Meese, Deaver) 9:30 am National Security Briefing Oval Office (15 min) (William P. Clark) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office (25 min) 10:25 am Depart South Grounds for Visit to South Grounds Department of Transportation (Stephen Studdert) 11:45 am Return from DOT Visit South Grounds 12:00 m Lunch and Personal Staff Time Oval Office (90 min) 1:30 pm Presidential Statement re Statehood for Oval Office (15 min) Puerto Rico (Richard Williamson) 2:00 pm Cabinet Meeting Cabinet Room (60 min) (Craig Fuller) 3:00 pm NBC Photo Opportunity with the Vice Oval Office (5 min) President (David Fischer) 3:05 pm Personal Staff Time Oval Office (55 min) 5:30 pm Staff Time Oval Office (30 min) (Baker, Meese, Deaver) 1/11/82 Wednesday, January 13 9:00 am Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 9:30 am National Security Briefing, Oval Office (15 min) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office ( 60 min) 11:00 am PFIAB Meeting (Meese) Cabinet Room (15 min) 11:15 am Photo Opportunity, Association of American (10 min.) Editorial Cartoonists (Speakes) Oval Office 11:30 am Presentation of Diplomatic Credentials (30 min.) Oval Office 12:00 m T Housing Industry Luncheon (Dole) Cabinet Room (75 min) 1/11/82 Thursday, January 14 9:00 am Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 9:30 am National Security Briefing (Clark), Oval Office (15 min) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office (15 min) AM To New York City 12:00 Noon Attend New York Partnership Luncheon in New York City 1/11/82 Friday, January 15 Martin Luther King Birthday 9:00 am Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 9:30 am National Security Briefing (Clark), Oval Office (15 min) 9: 45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office (30 min) 10: 30 am Cabinet Time (Fuller) Cabinet Room (60 min) 12:00 m Lunch and Personal Staff Time Oval Office (90 min) 1:30 pm Consultative Meeting with Senate GOP Leaders (45 min) re 1983 Budget (Duberstein) Cabinet Room 5:30 pm Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 1/11/82 Saturday, January 16 Personal 7:30 pm Touchdown Club Awards Dinner in Washington BLACK TIE (Sheraton Washington) 11:00 pm Return to White House Sunday, January 17 Personal 1/11/82 Monday, January 18 9:00 am Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 9:30 am National Security Briefing (Clark), Oval Office (15 min) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office (60 min) 11:00 am T Urban Affairs Meeting (Fuller) Cabinet Room (45 min) 11:45 a.m. Courtesy Call, Fellowship of Christian (10 min.) Athletes (Duberstein) Oval Office 12:00 m Issues Briefing Lunch (Darman/Fuller) (60 min) Cabinet Room 1:15 pm T Meeting with Minister of International Trade (15 min) of Japan (Fuller/Clark) Oval Office 1:45 pm T Meeting with National Association of Towns and (20 min) Townships (Williamson) Cabinet Room 2:05 (55 min) Personal Staff Time 4:00 pm TV Guide Interview (Speakes) (30 min) 5:30 pm Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 1/11/82 Tuesday, January 19 9:00 am Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 9:30 am National Security Briefing (Clark), Oval Office (15 min) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time (30 min) 12:15 pm T Social Commentators Lunch 4:00 pm Personnel Time (James) Oval Office (30 min) 5:00 pm Taping Session (1) Actors Fund Medal (45 min) (2) European Management Forum Symposium (3) Public Service Armed Forces Advertisement (4) Bob Hope Heart Research Institute (5) 60-year celebration of WOR-Radio-New York (6) Press Club Salute to Congress Dinner on 1/27 (Goode/Bakshian) (7) Taping for Hockey League (T) 5:30 pm Staff Time (Baker, Meese, Deaver) Residence (30 min) 1/11/82 Wednesday, January 20 First Year Anniversary 9:00 am Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 9:30 am National Security Briefing (Clark), Oval Office (15 min) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office (30 min) 10:30 am T Meeting re Miami Crime (Darman/Fuller) (20 min) Roosevelt Room 11:00 a.m. Cabinet Meeting Cabinet Room (60 min.) 5:30 pm Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 7:30 pm N GOP Fundraiser Reception (Washington Hilton) BLACK TIE 1/11/82 Thursday, January 21 9:00 am Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 9:30 am National Security Briefing (Clark) Oval Office (15 min) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office (30 min) 12:00 m Lunch with the Vice President Oval Office (60 min) 5:00 pm Haircut (30 min) 1/11/82 Friday, Januay 22 9:00 am Staff Time (Baker, Meese, Deaver) Oval Office (30 min) 9:30 am National Security Briefing (Clark) Oval Office (15 min) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am To the Residence 10:30 am Depart for Camp David 1/11/82 Saturday, January 23 N CAMP DAVID Sunday, January 24 N CAMP DAVID 5:00 p.m. N Return to White House UNPUBLISHED January 11, 1982 5:00 pm THE WHITE HOUSE WASHINGTON THE PRESIDENT'S SCHEDULE Tuesday, January 12, 1982 9:00 am Staff Time Oval Office (30 min) (Baker, Meese, Deaver) 9:30 am National Security Briefing Oval Office (15 min) (William P. Clark) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office (25 min) 10:25 am Depart South Grounds for Visit to South Grounds Department of Transportation (Stephen Studdert) 11:45 am Return from DOT Visit South Grounds 12:00 m Lunch and Personal Staff Time Oval Office (90 min) 1:30 pm Presidential Statement re Statehood for Oval Office (15 min) Puerto Rico (Richard Williamson) 2:00 pm Cabinet Meeting Cabinet Room (60 min) (Craig Fuller) 3:00 pm NBC Photo Opportunity with the Vice Oval Office (5 min) President (David Fischer) 3:05 pm Personal Staff Time Oval Office (55 min) 5:30 pm Staff Time Oval Office (30 min) (Baker, Meese, Deaver) UNPUBLISHED January 11, 1982 1 THE WHITE HOUSE 5:00 pm WASHINGTON THE PRESIDENT'S SCHEDULE Tuesday, January 12, 1982 9:00 am Staff Time Oval Office (30 min) (Baker, Meese, Deaver) 9:30 am National Security Briefing Oval Office (15 min) (William P. Clark) 9:45 am Senior Staff Time Oval Office (15 min) 10:00 am Personal Staff Time Oval Office (25 min) 10:25 am Depart South Grounds for Visit to South Grounds Department of Transportation (TAB A) (draft remarks attached) (Stephen Studdert) 11:45 am Return from DOT Visit South Grounds 12:00 m Lunch and Personal Staff Time Oval Office (90 min) 1:00 (20 mins.) Sam theree 1:30 pm Presidential Statement re Statehood for Oval Office (15 min) Puerto Rico Richard Williamson) 1:15 Congman. (TAB B) (draft remarks attached) 2:00 pm Cabinet Meeting (TAB C) Cabinet Room (60 min) (Craig Fuller) 3:00 pm NBC Photo Opportunity with the Vice Oval Office (5 min) President (David fischer) (TAB D) 3:05 pm Persona Staff Time NSC Oval Office (30 (55 min) 4.30 (5 min) Diep by mtg w/Legis. Attains Hends Roosevelt Room 5:30 pm Staff Time Oval Office (30 min) (Baker, Meese, Deaver) A THE WHITE HOUSE WASHINGTON January 11, 1982 VISIT TO THE DEPARTMENT OF TRANSPORTATION TIME: 10:25 a.m. departure DATE: January 12, 1982 LOCATION: The Department of Transportation FROM: CRAIG L. FULLER es I. PURPOSE It was thought that as part of the preparation for the State of the Union, visits to one or two departments would provide you with a good opportunity to meet directly with federal employees and be briefed on matters that are of importance to senior administration officials. The first department selected was the Department of Transportation. II. BACKGROUND There will be two principal activities associated with the visit: 1. Senior Executive Service Forum You will make a few remarks to about 150 members of the Senior Executive Service (SES) who work at the Department of Transportation. Draft remarks are attached. 2. Weekly Operating Meeting Drew Lewis has a weekly operating meeting with the senior appointees in the department. They plan to brief you on several departmental activities. The last item to be covered in the meeting concerns a Transportation recommendation to form a Advisory Commission on Drunk Driving. This is in direct response to your recent suggestion to them on the subject. III. PARTICIPANTS To be included in the detailed schedule. IV. PRESS PLAN A press pool will accompany you on the visit. The principal photo opportunity will occur when you make your remarks to the Senior Executive Service employees. V. SEQUENCE Available in the trip schedule. THE WHITE HOUSE WASHINGTON SCHEDULE OF THE PRESIDENT TUESDAY, JANUARY 12, 1982 EVENTS: Department of Transportation Senior Executive Service Forum Department of Transportation Senior Staff Weekly Operating Meeting DRESS: Men's Business Suit WEATHER: Low Teen's, Partly Cloudy 10:25 a.m. Depart White House en route Department of Transportation. Drive Time: 5 mins. 10:30 a.m. Arrive Department of Transportation. - Closed Press Coverage Met by: Secretary Drew Lewis Proceed to Auditorium for Senior Executive Service Forum. Proceed to dais and take seat. Attendees: 180. -Travel Pool Coverage Secretary Lewis makes remarks. Introduction by Secretary Lewis. 10:42 a.m. Remarks. 10:55 a.m. Conclude remarks. Proceed to Room 10214 for Department of Transportation Senior Staff Weekly Operating Meeting. - Official Photographer (Refer to attached seating diagram.) Secretary Lewis makes remarks. FAA Administrator Lynn Helms makes remarks. FHWA Administrator Ray Barnhart makes remarks. Tuesday, January 12, 1982 - Continued Page 2 UMTA Administrator Art Teele makes remarks. Secretary Lewis makes remarks on Drunk Driving Commission. NHTSA Administrator Ray Peck makes remarks. Brief Remarks. 11:35 a.m. Depart Room 10214 en route motorcade. 11:45 a.m. Depart Department of Transportation en route White House. Drive Time: 5 mins. 11:50 a.m. Arrive White House. B (Maseng/AB) January 11, 1982 PRESIDENTIAL STATEMENT: PUERTO RICO STATEHOOD When I announced my candidacy for this office more than 2 years ago, I pledged to support statehood for the Commonwealth of Puerto Rico, should the people of that island choose it in a free and democratic election. Today I reaffirm that support, still confident in my belief that statehood would benefit both the people of Puerto Rico and their fellow American citizens in the 50 states. While I believe the Congress and the people of this country would welcome Puerto Rican statehood, this Administration will accept whatever choice is made by a majority of the island's population. No nation, no organization nor individual should mistake our intent in this. The status of Puerto Rico is an issue to be settled by the peoples of Puerto Rico and the United States. There must be no interference in the democratic process. Puerto Ricans have borne the responsibilities of U.S. citizenship with honor and courage for more than 64 years. They have fought beside us for decades and have worked beside us for generations. Puerto Rico is playing an important role in the development of the Caribbean Basin Initiative and its strong tradition of democracy provides leadership and stability in that region. In statehood, the language and culture of the island -- rich in history and tradition -- would be respected, for in the United States the cultures of the world live together with pride. Page 2 We recognize the right of the Puerto Rican people to self-determination. If they choose statehood, we will work together to devise a union of promise and opportunity in our Federal union of sovereign states. THE WHITE HOUSE WASHINGTON January 11, 1982 MEETING WITH GOVERNOR CARLOS ROMERO FORMER GOVERNOR LUIS FERRE MAYOR HERNAN PADILLA COMMISSIONER BALTAZAR CORRADA DATE: JANUARY 12, 1982 LOCATION: OVAL OFFICE TIME: 1:30 P.M. FROM: RICHARD S. WILLIAMSON Rich I. PURPOSE To reaffirm preference for Statehood for Puerto Rico, should that be the choice of the people of Puerto Rico. II. BACKGROUND When you announced your intentions to seek the 1980 Republican Presidential nomination, your televised speech to the nation included a commitment to support statehood for Puerto Rico, should that be the choice of the people of Puerto Rico. This position was also expressed in a February 11, 1980, article in the Wall Street Journal by you. (Copy attached). On Monday, September 28, 1981, Vice President Bush con- firmed the Reagan Administration's support for Puerto Rican statehoood at a GOP rally in San Juan. On October 8, 1981, Former Governor Luis Ferre and Mayor Hernan Padilla expressed their appreciation for Vice President Bush's visit to Puerto Rico and noted their wish for a "personal and official statement" by President Reagan on Puerto Rican statehood. A statement will strengthen the U.S. position with regard to the United Nations. A Statehood Statement is supported by Vice President Bush, Ambassador Kirkpatrick, and Puerto Rican officials. For your general information: - In April of 1981, the Puerto Rican Task Force was organized as a vehicle for communication and coordi- nation between Puerto Rico and your Administration. I am Chairman of the Task Force. - 2 - - The Task Force has held numerous meetings with Puerto Rican government, civic, academic, and business leaders. In September, 1981, the Task Force held public hearings in Puerto Rico. - The Task Force played an important role in negotiating the placement of Haitian aliens at Ft. Allen, Puerto Rico. - Working with Bill Brock, the State Department, and the Commerce Department, the Task Force has served as a forum for Puerto Rico's participation in the development of the Caribbean Basin Initiative. - The reaffirmation of your position on Puerto Rican State- hood will: - Reinforce and strengthen the United States' position in the Caribbean. - Strengthen the U.S.'s position regarding the Caribbean in the United Nations. - Reinforce your supporters in Puerto Rico who have held fast in defense of your economic programs. III. PARTICIPANTS Vice President George Bush Governor Carlos Romero (Democrat) Former Governor Luis Ferre (Republican State Chairman) Mayor Hernan Padilla (Republican National Committeeman) Commissioner Baltazar Corrada (Democrat) Richard S. Williamson Thad Garrett - Office of the Vice President Rick Neal - White House Intergovernmental Affairs IV. PRESS PLAN White House Photographer Statement released to press following meeting. V. SEQUENCE OF EVENTS 1:00 p.m. - Reception with Vice President Bush in the Roosevelt Room. 1:30 p.m. - Vice President Bush and participants meet President Reagan in Oval Office. - 3 - 1:35 p.m. - President Reagan makes remarks regarding Puerto Rican Statehood (remarks attached). 1:40 p.m. - Photo Opportunity. 1:45 p.m. - Conclusion. Attachment: Statement L MONDAY. FEBRUARY 11, 1980 Puerto Rico and Statehood By RONALD REAGAN merely defend ourselves against this at- Puerto Ricans already face higher tax When I formally announced my inten- tack. We must ourselves attack, not with rates and they have shed a disproportion- tion to seek the Republican presidential terror, but with statehood. ate share of blood, relative to mainland cit- nomination in 1980. my televised speech to It is not only that the fact of Puerto Ri- izens, in our wars. Thus, an American the nation included a commitment to not President will have to work with Governor can statehood would deny Mr. Castro a only support statehood for Puerto Rico if raw nerve. But, in cementing itself to us as Romero to integrate the two separate fis- the people of the island Commonwealth de- the 51st state, with unbreakable bonds, cal systems in a way that increases sire statehood. It also included a commit- Puerto Rico would represent a positive opportunity for the average island citizen, ment that, as President, I would initiate bridgehead into the Caribbean, Latin and thereby makes statehood an attractive statehood legislation. which really means America and the developing world. proposition rather than an increased bur- that I would take the lead in persuading den. Governor Romero has already been the people of Puerto Rico-the mainland This geopolitical concept of Puerto Ri- moving in this direction, systematically United States-all American citizens-that co's exposed position on the front lines of lowering tax rates in preparation for statehood will be good for all of us. geopolitics isn't new on my account, by merger. any means. It is at the heart of the old Re- A number of people, including close publican Statehood Party- on the island, In the 1980s, the American President friends, wondered about my remarks. Not now the New Progressive Party. It is un- must understand that for U.S. foreign pol- that they oppose the statehood idea. They derstood by Gov. Carlos Romero Barcelo icy to succeed it must be magnetic, as op- just thought that it seemed odd that I posed to expansive. This means we must would put such emphasis on an issue that once again make economic policy an essen- strikes them as routine, when U.S. foreign If we cannot design a tial ingredient of foreign policy. This is be- policy positions everywhere seem to be col- hind my idea of statehood for Puerto Rico. lapsing. But then I remind my friends that model for a political econo- Foreign Policy Failures in 1976, when many U.S. foreign policy po- my that is sufficiently attrac- At the heart of our foreign policy fail- sitions were collapsing. I was putting great ures of the last 25 years. I believe, has emphasis on the Panama Canal. tive, if we can't win over our been the attempt to export "economic ex- By this observation I mean to suggest fellow citizens in Puerto pansion" through dollars, rather than that we cannot expect our foreign policies ideas. While the rest of the world waited to be enjoying prestige around the world- Rico, how can our model for us to assist in the development along attracting support instead of collapsing- the lines of our own "land of opportunity.' when we are having serious problems with succeed as an instrument of we responded with ideas that were never our closest neighbors. The American peo foreign policy anywhere in part of our own development: high tax ple lost the debate over the Canal when rates, plenty of public debt, devalued cur- despite their opposition to the treaties, the world? rencies and less rather than more democ- President Carter pushed them through. We racy in the guidance of state-capitalist sys- were going to win the applause of the tems. Third World. remember? and San Juan Mayor Hernan Padilla, the two young, dynamic advocates of state- Looking back on it, it should be no won-_ Now, it is no longer our neighbors who bood. I know it is profoundly understood by der that GI Joe was turned into the Ugly are being pulled away from us in the Luis Ferre, the 77-year-old President of the American. world-wide tug-of-war. Now-at least in Senate, who was governor of Puerto Rico And now. in our backyard, the Cubans this hemisphere-the pivot of the struggle when I was governor of California. To are handing out AK-47 rifles even as they is among our fellow citizens in the Puerto these men, statehood is an historical im- advertise their system-all over the region Rico Commonwealth. perative. -as the path of progress. And we sit on "Yankee Imperialism" It is as simple as this: If we in the our thumbs. The "Cuban Model" has been Fidel Castro hardly lets a speech go by United States cannot design a model for a a disaster. Cuba is incapable of providing without denouncing "Yankee imperialism" political economy that is sufficiently at- its people with the essentials of life. It is in Puerto Rico and calling for its total in- tractive, if we can't win over our fellow totally dependent on the U.S.S.R., which, in dependence from the United States. The citizens in Puerto Rico to the nuptials that turn, depends on us for its food. Yet, with idea is not confined to blustering speeches statehood involves, how can our model suc- noisy propaganda and active support of vi- at Havana's Third World conferences or in ceed as an instrument of foreign policy olent revolution borne of economic failures, the United Nations. Early in December, it anywhere in the world? And. if we can suc- the Soviet-Cuban offensive in Latin Amer- came out of the point of a gun. A few miles ceed in discovering what it is that drags on ica continues to slice off one piece of sal- from San Juan, two Navy employes were the statehood idea, what it is that fosters a ami at a time. assassinated by the Soviet-made machine volatile independent movement that can guns of terrorists who represent the tiny An American counteroffensive must harbor assassins, perhaps we can shed independence movement on Puerto Rico. light on the failures of American foreign rely on the greatest weapon we have: the hope of a better life, achieved by adopting While the world watches the Iranian policy around the world this past quarter America's recipe for prosperity. It must drama unfold, comrades of Cuba and its al- century. advertise the proven secrets of economic lies have now established a beachhead of How do we begin to understand Iran, growth. upward mobility for the poor, and, violence on American shores. and what has gone wrong in the Middle ultimately, political stability-even as we Our keen "peacefully coexisting" com- East, if we cannot fathom Puerto Rico- return to this recipe ourselves: reasonable petitor, the Soviet Union, is not unaware of what it is that repels it as it is drawn to tax rates, modest regulation, balanced the importance of Puerto Rico in the great us? budgets and stable currency. global contest of ideas. As a "Common- wealth" Puerto Rico is now neither a state The one thing I can say for sure, be- Instead of letting our competitors pick nor independent, and thereby has an his- cause it is a part of human nature, is that the battleground of violent revolution. we you cannot arrange a marriage unless both should pick a peaceful battleground of torically unnatural status. There is this spouses believe the union will be greater competition between economic systems. In- raw nerve to rub. and our Marxist-Leninist than the sum of its parts. Because of this, I stead of reacting with force to revolution- competitors rub IL They' long thought of the island economies of the Caribbean as don't believe statehood will be achieved un- ary situations, we should preempt those easy marks. I do not suggest that the til a great majority of Puerto Ricans-not situations with a positive foreign policy. Kremlin strategists expect to snap Puerto just a simple majority-feel the pull of We can build from a bridgehead in Puerto Rico into the Communist orbit any time statehood with passion. Rico. To show the world that the American idea can work in Puerto Rico is to show soon, only that they find it convenient to Some Puerto Rican leaders here argue that our idea can work everywhere. use its unnatural status, creating tensions that the people of Puerto Rico must sacn- around the idea of American "colo- fice in order to enjoy statehood. especially Mr. Reagan is a candidate for the Re- nialism." "Yankee imperialism." We can't by means of greater tax burdens. Yet publican presidential nomination. C THE WHITE HOUSE WASHINGTON January 11, 1982 MEETING WITH THE CABINET TIME: 2:00 (60 minutes) DATE: January 12, 1982 LOCATION: Cabinet Room FROM: CRAIG L. FULLER S I. PURPOSE This meeting of your full Cabinet is for the purpose of reviewing two matters raised by the Office of Personnel Management. II. BACKGROUND The following items are on the agenda for the meeting: 1. Federal Labor Relations Don Devine The Office of Personnel Management will provide a briefing for you and members of the Cabinet on this matter. 2. PACE Examination Decree Don Devine PACE is a professional occupations entry exam used extensively in the federal government. A consent decree signed in the closing days of the Carter Administration now prohibits the use of the exam and OPM has been faced with a considerable problem since the beginning of the administration. OPM is now ready to implement a program to provide some form of entry examination in the absense of the PACE exam. Don Devine has been asked to brief the members of the Cabinet on the matter since it will affect all of them. 3. Cabinet Executive Sessions Sam Pierce Secretary Pierce requested time on the agenda to discuss his proposal for executive sessions of the Cabinet. III. PARTICIPANTS A list of participants will be attached to the agenda. IV. PRESS PLAN White House photographer only. V. SEQUENCE After the meeting is called to order, Don Devine, Director of the Office of Personnel Management will lead off. CABINET BRIEFING PAPER ON FEDERAL SECTOR LABOR RELATIONS I. Responsibilities 1. Agency heads are responsible by law for all labor relations matters within their organizations. 2. The Director of the Office of Personnel Management is responsible for providing policy, advice, and training for agency representatives in meeting their labor relations responsibilities. II. Union Rights 1. Unions have the right to exclusive recognition and to negotiate agreements in appropriate units if they win a majority of votes cast in open shop election units. Sixty- one percent of executive branch employees are represented in such units, much higher than in the private sector. 2. There is no right to strike. Instead all negotiated agreements must have grievance procedures with binding arbitration only as the final step, and even then only if the Federal Service Impasses Panel decides that remedy is appropriate. Grievances cover discipline, discrimination, dismissal, and so forth. 3. An independent agency, the Federal Labor Relations Authority, resolves disputes over appropriate bargaining units, scope of negoitations, unfair labor practices and arbitration awards. It has a statutory General Counsel, who investigates and prosecutes unfair labor practice charges. Decisions are appealable to Circuit Court of Appeals. 4. Employees have the right to a union representative when called for possible disciplinary action by management. 5. Free dues checkoff and unlimited official paid time for union negotiators is due to unions with recognition. III. Management Rights 1. Strong management rights are set in law, with matters either mandatorily non-negotiable, or permissibly negotiable at the option of the agency. However, management is required to negotiate on the impact and implementation of its decision. 2. No bargaining is permitted on wages and fringe benefits. Government-wide regulations, including merit system require- ments, also serve as a bar to what can be negotiated by management. 3. In his statement of November 16, 1981, President Reagan said that unions are among our most valued institutions, that management should adopt an open-door policy and where appropriate give full consideration to organized labor's interests and concerns. 4. Management officials must understand and accept the legitimate collective bargaining rights of employees and unions, as well as seek their support and deal effectively with their opposition, in the challenging circumstances which exist as the Administration moves towards the goal of a leaner, more effective government. IV. Labor Relations Leadership 1. The President has stated: "In government, there is a tendency on the part of some people in the permanent structure, that they've been here before you got here and they' 11 be here after you're gone, and they're not going to change the way they're doing things." As the President said, this problem is limited to only some careerists. Most civil servants are cooperative--if they receive positive, clear and dynamic leadership from agency heads. Most problems of unresponsive civil servants are the result of weak leadership. For both employees who willingly cooperate and those who are reluctant, personal leadership by the agency head is the key. 2. Not only must the agency head, himself, lead, he must also enhance the ability of operating officials to manage effectively, especially his political appointees, by providing necessary training and policy guidance concerning the challenge of implementing the President's program in a collective bargaining atmosphere. 3. Very importantly, government managers must recognize the positive functions unions can serve in the workplace: for example, alerting top management to developing employee problems which affect productivity; cooperating with - 3 - management by attempting to eliminate problems which generate grievances; encouraging cost-saving ideas; promoting on-the-job safety; and facilitating employee knowledge of management policies. 4. The basic function of federal managers in labor relations is to create positive conditions of work and continuity of government services: by operating sound personnel- management systems; by applying appropriate and flexible rewards, sanctions and penalties to maintain operations; by engaging in effective contingency planning to control illegal job actions; and by returning operations to normal as soon as possible after unavoidable disruptions. 5. The major tools of effective leadership in the Federal Government are as follows: personal meetings with and encouragement of staff, employees, and union representatives; performance appraisals; SES bonuses and supervisor merit pay; disciplinary procedures; incentive awards and letters of recognition; positive statements about civil servants, assisting in out-placement efforts for displaced employees, and so forth. A regular schedule to effectuate such tools should attract top management attention. 6. The President set the tone when he personally awarded the rank awards to distinguished senior executives in the Rose Garden on October 14th of this year. At that time, he said, "The ability of this or any Administration to succeed depends in no small degree upon the energy, dedication and spirit of the great majority of Federal employees.' PACE CONSENT DECREE (LUEVANO V. DEVINE) I. BACKGROUND OF THE LITIGATION The Luevano V. Devine lawsuit was filed in the U. S. District Court for the District of Columbia in January 1979. The question presented by the case was whether OPM had sufficiently vali- dated PACE to overcome its alleged "adverse impact." It has consistently been OPM's position that PACE is a well-validated examination and that sufficient tools are available to our attorneys and psychologists to make a strong defense in its behalf. Nonetheless, a high level policy decision was made in the early stages of the litigation during the Carter Adminis- tration to settle the case without a trial. Thus commenced lengthy nego- tiations to reach a settlement which eventually resulted in the consent decree. II. MAJOR PROVISIONS OF THE PROPOSED DECREE 1. OPM must phase out PACE in no more than three years and at least according to the following schedule: First year = 50 percent of PACE hires Second year = 80 percent of PACE hires Third year = 100 percent of PACE hires 2. The Decree requires us, when we use exams, to replace PACE with job- specific alternative examining procedures which would be phased in over the same three-year period described above. 3. This requires agencies to recruit and use special hiring programs to eliminate "adverse impact" from the interim use of PACE, and any new alternative procedures. These "all practicable efforts" can be used for up to 5 years after an alternative is put into effect. 4. The Decree requires OPM and agencies to compile and provide extensive reports to plantiffs annually on PACE applicants and appointments. III. TITLE 5 AND REGULATORY CONSTRAINTS 1. Title 5, Section 1103. Functions of the Director This section spells out the specific functions of OPM's Director, including "enforcing the civil service rules and regulations of the President and the Office and the law governing the civil service : 2. Title 5, Section 1104(a)(2), Delegation of Authority for Personnel Management "The Director may not delegate authority for competitive examinations with respect to positions that have requirements which are common to agencies in the Federal Government, other than in exceptional cases in which the interests of economy and efficiency require such delega- tion and in which such delegation will not weaken the application of the merit system principles." -2- 3. Title 5, Section 2301. Merit System Principles " selection and advancement should be determined solely on the basis of relative ability, knowledge, and skills, after fair and open competition which assures that all receive equal opportunity." 4. Title 5 Sections 3309 - 3318. Veteran Preference This includes the prohibition of passing over a veteran to select a non-veteran, unless approval is given by OPM. 5. Part 300. Code of Federal Regulations Subpart A, 300.102, states that competitive employment practices: " test the relative capacity and fitness of candidates for jobs to be filled; result in selection from among the best qualified candidates " IV. OPTIONS: OPTION 1: RETAINING PACE WITH PLAINTIFF OR CONGRESSIONAL ASSISTANCE FEATURES: Accepts substantial proof which exists validating PACE Negotiate with plaintiffs to continue to use PACE Present Congress with the problems OPTION 2: PACE-LIKE ALTERNATIVE MERIT EXAM AND LITIGATION FEATURES: Present the Court with PACE-like exam and OPM problems If objections, resolve in appellate court OPTION 3: DEVOLUTION OF EXAMINING TO AGENCIES FEATURES: Shift examination and staff functions to agencies Spread costs and responsibility to all the defendants OPTION 4: MODIFIED COMPLIANCE USING MIX OF MERIT EXAMINATIONS FEATURES: 30 + separate exams to replace PACE Each exam will include a written test, based upon merit Develop specific exams in many, but not all occupations Very costly; exceeds funds available in OPM's current budget New exams subject to merit-adverse impact paradox Not meet Decree requirement for 100+ exams OPTION 5: COMPLIANCE THROUGH EXCEPTED APPOINTMENT FEATURES: Severely curtail outside hiring for PACE jobs and rely on internal sources to fill vacancies Where necessary, use "special hiring programs" to supple- ment internal appointments as well as eliminate adverse impact -3- OPTION 6: FULL COMPLIANCE THROUGH ELIMINATION OF ADVERSE IMPACT FEATURES: Meet the principal Decree requirement, elimination of adverse impact, by race and national origin conscious hiring Use either PACE or alternative exam registers If necessary, seek modification of the Court Decree to allow explicit quota hiring OPTION 7: IMPOSSIBILITY OF BEING IN FULL COMPLIANCE FEATURES: Cannot comply with Decree and law at reasonable cost Director of OPM cited for contempt of court DETAILED POLICY OPTIONS Option 1: Retaining PACE with Plaintiff or Congressional Assistance OPM could reopen negotiations with plaintiffs and propose to continue use of PACE indefinitely while ensuring through "all practicable efforts" (and perhaps other measures) that there will be no adverse impact. The problems and cost resulting from loss of examining flexibility under the decree could be reported to Congress by OPM. We could also inform Congress of how the public good would be better served if OPM were able to continue the use of broad band examining for PACE jobs. OPM should begin immediately to negotiate with the plaintiffs for retention of PACE based on inability to meet the PACE phase out schedule because of the cost of constructing alternatives, the loss to the public if PACE is abandoned, and the conclusions of GAO (in its Mid-Atlantic study) that alternatives to PACE, where used, do not improve affirmative employment efforts. During these negotiations (and especially if these negotiations fail) OPM should inform OMB, GAO and the appropriate Congressional committees of the impact the new examining process will have on OPM's ability to carry out its statutory mandates within its current budget. Modifications to the decree to retain PACE or to develop a new broad-band examination as a PACE alternative are likely to be acceptable to the plaintiffs only if they include procedures for ensuring there will be no adverse impact. To accomplish this, OPM would have to encourage agencies to use the special hiring programs allowed in the decree and perhaps seek changes in Title 5 to allow for selective certification (i.e., 3 + 3 certification from dual registers or race-norming the PACE) for PACE jobs to ensure that adequate numbers of protected class members are available to selecting officials. Section 6(d) of the proposed decree provides that modifications may be sought " to carry out its purposes, as may be appropriate in light of changes in circumstances or changes in law." Further, Section 13(b) allows the defendants, if unable substantially to fulfill the schedule to which the parties have agreed, to notify the Court and the plaintiffs, provide reasonable explanation and negotiate in good faith to resolve or by-pass the problem. The recognition in Section 7 of the Decree-that exam issues may not be fully resolved within five years but that absent agreement or cause, the jurisdiction of the Court will not automatically extend-- makes one wonder whether the Court would push this issue if OPM delivers on the "no adverse impact" part but resists on the elimination of broad band exams. -2- Option 2: PACE-like Alternative Merit Exam and Litigation OPM could present to the court an examination proposal which meets the intent of the decree but at the same time also meets OPM's legitimate need for professionally defensible and programmatically practical selection methods. This proposal would include a single PACE-like exam or a very few exams to replace PACE. Despite the strong arguments we can present to show how this approach is the only way OPM can meet the legitimate aims of the decree, the plaintiffs will undoubtedly reject this solution. Resolving these differences may force the court to focus on the negative effects on the public at large of implementing the multiple examination requirement of the decree, especially where use of broad band examinations in conjunction with other measures can accomplish the legitimate goals of the plaintiffs. The decree requirement that PACE be replaced with occupationally specific examinations imposes a heavy administrative and financial burden, and does not advance the affirmative employment aims of the plaintiffs. The costs attendant to complying with this requirement for alternative tests for each of the 118 PACE occupations would be staggering for OPM, especially at a time when our budget is experiencing successive reductions. Conservative cost estimates for developing and administering the alternatives which we believe would fully meet this requirement of the decree run in excess of $33 million per year. Thus, filling PACE jobs which account for only 6 percent of government-wide competitive hires, would require one-third of OPM's total S&E budget. Even if we were to implement the alternatives required by the decree, it is very likely we will have to conduct an expensive defense of their validity later. If their legality is not accepted at that point, we will have wasted a great deal of time and money. In addition, it is likely that occupationally specific examinations will result in as great adverse impact as broad band tests. Therefore, for an unknown number of new examinations, optimum use of the registers may not be possible because of the "all practicable efforts" provision of the decree for averting adverse impact. Another very serious problem associated with the multiple exam requirement of the decree is the effect it will have on recruiting, especially at college campuses. Currently, students who are interested in pursuing an interest in Federal employment can take one test and be considered for a large number of occupations. Except for those students with rather definite and narrow occupational interests, the multiple exam provision of the decree will all but end any effective recruiting on campuses. Following this option would allow us to raise these issues through the process of litigation. We could use this opportunity to present the merits of broad band examining, an issue not considered in reaching the settlement contained in the decree. -3- Option 3: Devolution of Examining to Agencies Devolution of the development and staffing function to agencies to spread compliance costs, both fiscal and operational, among the several defendants. OPM has responsibility for development and implementation of alternatives only insofar as it retains examining authority for PACE jobs. Nothing in the decree precludes OPM from delegating this examining authority (and therefore responsibility for compliance with the alternatives provisions of the decree) to the other defendant agencies. However, section 1104 (a) (2) of Title 5 provides " the Director may not delegate authority for competitive examinations with respect to positions that have requirements which are common to agencies in the Federal Government, other than in exceptional cases in which the interests of economy and efficiency require such delegation and in which such delegation will not weaken the application of the merit system principles". Although it would spread both the cost of and the staff workload for examination development and administration, delegation to agencies would assuredly result in inconsistent quality of examining, different examinations for similar occupations, and public complaints about difficulty in getting considered for Federal jobs. Option 4: Modified Compliance using Mix of Merit Examinations OPM has developed a proposal for the development of occupation-specific alternative examinations that addresses the terms of the decree regarding implementation of PACE alternatives and is in line with the Director's instructions to include written tests in alternatives. Under this proposal, about 30 separate written examinations would be developed to replace PACE. These exams will be based on merit, but not all of the 118 occupations will have a separate exam. Because of this, it is unlikely that the court will accept this proposal as compliance. Furthermore, the proposed alternatives are likely to result in adverse impact and there is a good possibility that OPM will need to defend their use on the basis of validity evidence once they have been in use for 2 years. The decree requires validation in accordance with the provisions of the Uniform Guidelines. Special hiring programs will be necessary to alleviate adverse impact, thus limiting the benefits of the alternatives during the life of the decree. The cost to develop and implement PACE replacements under this option exceeds the cost of OPM's current PACE examining program by more than $5 million. This cost estimate does not include the costs of collecting and compiling adverse impact data and of presenting validity evidence. This high cost is difficult to justify given the limited benefits and probability that use of the new tests will be overturned by the court in future enforcement proceedings under the decree. -4- Option 5: Compliance through Excepted Appointments OPM could eliminate or severely curtail outside examining for PACE jobs for the duration of the decree. Where necessary, the special hiring programs allowable under the decree could be used to supplement internal hires during the term of the Court's jurisdiction. This course of action may leave OPM and other agencies in compliance with the decree, provided the special hiring programs eliminate adverse impact or agencies are able to document under the provisions in Paragraph 18(b) that they met the requirements for use of "all practicable efforts" in Paragraph 8(f). This could leave us under the Court's jurisdiction for the maximum period (5 years after cessation of PACE) and trades off short term disadvantages (possible decrease in quality of hires) for short and long term advantages (little or no wasted resources, gradual development of sound alternative selection procedures, favorable changes in the mood of the country and the courts). Budget cutbacks in most non-Defense Federal agencies will most likely result in fewer PACE job hires at least in the first few years of the decree. Adopting a policy of filling any such vacancies internally, by interagency transfer, or through graduate level intern or other non-competitive hiring programs would eliminate or at least curtail the need to implement alternative examinations and to collect data on outside applicants. OPM would phase out PACE immediately, as allowed under Paragraph 13(b) of the decree. All competitive appointments from outside hires would be suspended for five years. When an agency requests a certificate of appointment for a position once in a PACE-covered occupation, it should be placed in Schedule B, under the authority of civil service Rule 6.1. All appointments to these excepted positions will be made in accordance with Veteran Preference. These will be retained until the end of the five-year period, when all individuals will be subject to examination under a PACE-replacement examination (developed over the five-year period), and all other civil service regulations in order to be promoted out of a Schedule B position into a higher graded position in the competitive service. The Uniform Guidelines would be revised during this period or possibly the decree modified. Option 6: Full Compliance Through Elimination of Adverse Impact OPM could fully comply with the provisions of the decree calling for elimination of adverse impact by relying on race-conscious selection. This could be done either by issuing implicit guidance to agencies encouraging them to be race-conscious in filling PACE jobs or by petitioning the court to modify the decree to allow an explicit quota hiring system until a valid alternative to PACE is developed. -5- The decree requires both elimination of adverse impact and the implementation of occupation-specific alternative examinations to replace PACE. Research indicates, however, that the use of valid alternatives (most often written tests) will do little to reduce adverse impact. This option presents a way to achieve the affirmative employment objective of the decree (to make up for past shortfalls) without wasting resources on the development of alternatives which will be challenged because of their adverse impact and do not meet OPM's long-term examining needs. Option 7: Impossibility of Being in Full Compliance OPM could have the Department of Justice present to the court at the outset the difficulties it sees in complying with the decree under any of the options detailed above (assuming retaining PACE or developing a new broad band test are not in compliance). These difficulties include the statutory limitations on OPM's authority to delegate examining for PACE jobs to agencies, the loss in productivity to the government if merit examining is compromised, the technical impossibility of developing job-related exams which do not result in adverse impact, and the high cost of developing alternatives for each of the 118 PACE occupations. If modifications in the decree are sought, we may be unsuccessful in convincing the court that the intent of the decree can be met in ways less damaging to Federal staffing and more within our budgetary constraints. The modification strategy may result in the court forcing us to implement a plan for which we do not have the resources and which is illegal under other laws. Under Option 7, we could immediately present to the court the legal and fiscal obstacles to compliance rather than taking the time to negotiate changes in the decree which we may not be able to implement and which may not be in compliance with all laws. Plaintiffs would undoubtedly object and the court would probably be sympathetic. This might lead to a contempt of court citation against the Director of OPM.